Oilseeds World Markets and Trade
OVERVIEW
Global oilseed production is forecast higher this month. Soybean production is up for Brazil, Argentina, Paraguay, and Uruguay. Rapeseed production is adjusted higher for India and sunflowerseed crop projection is up in Russia and South Africa. Global soybean exports are projected higher this month on larger shipments from Brazil, Paraguay, and Uruguay. Imports are forecast higher this month as stronger demand from China, the European Union, Japan, and Thailand more than offsets reductions for Pakistan and Taiwan. Global soybean stocks are up this month, led by Brazil, Argentina, and China. The U.S. season-average farm price is down $0.05 to $9.55 per bushel.
KEY COMMODITY PRICES
U.S. export bids in March, FOB Gulf, averaged $380/ton, down $21 from last month. FOB Brazil Paranagua averaged $381/ton, down $21 from last month. FOB Argentina Up River averaged $374, down $23 from last month. The downtrend in price reflects growing supply pressure with soybean production estimates climbing in Brazil, Argentina, and other South American producers. Additionally, soybean prices are pressured from expectations of a further sizable increase of U.S. soybean plantings in 2017. (For more details see the cover article.) For the week ending March 30, U.S. 2016/17 soybean export commitments (outstanding sales plus accumulated exports) to China totaled 35.2 million tons compared to 26.8 million a year ago. Total commitments to the world are 55.2 million tons, compared to 44.3 million for the same period last year.
Source: USDA April 2017 Report
